US bond investors are positioning for a mild Federal Reserve easing cycle by reducing long-duration exposure and favoring intermediate Treasurys, reflecting expectations of fewer rate cuts in 2026 and a higher neutral rate near 3%. With inflation still above target and policy uncertainty elevated, banks and asset managers say the belly of the curve offers better risk-adjusted returns than traditional long-bond strategies.

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Private credit is increasingly mirroring the public bond market as rapid growth pushes the asset class into areas once dominated by high-yield bonds and leveraged loans. Assets under management are projected to reach $5 trillion by 2029, and lenders now offer private versions of nearly every major fixed-income segment. Experts say the convergence is driven by banks pulling back, borrowers seeking bespoke financing, and investors chasing yield. They warn that rising competition could pressure underwriting standards, increasing risks around leverage, liquidity, and potential market stress.

JPMorgan CEO Jamie Dimon has formed a high-profile advisory council, including Jeff Bezos, Condoleezza Rice and former NSA director Paul Nakasone, to guide the bank's $1.5 trillion "Security and Resiliency Initiative" aimed at strengthening US supply chains and critical technologies. Dimon also named Todd Combs to run a $10 billion investment fund within the effort, which focuses on national security priorities from rare earths to AI.

US equities edged lower Monday, with the Dow Jones Industrial Average down 0.4% and the S&P 500 off 0.3%, as investors stayed cautious ahead of a widely expected Federal Reserve quarter-point rate cut, even as chipmakers helped the Nasdaq nearly hold flat. Treasury yields also rose following stronger Chinese export data and higher US tariff revenues.

The US Commodity Futures Trading Commission has launched a pilot program allowing Bitcoin, Ether, and USDC to serve as collateral in derivatives markets, part of Acting Chair Caroline Pham's broader push to modernize digital asset oversight. The initiative, which includes new reporting requirements for futures commission merchants, rolls back older restrictions and could accelerate institutional use of tokenized collateral.

US Comptroller of the Currency Jonathan Gould said digital-asset firms applying for trust charters should be evaluated on the same basis as any other applicant, as charter requests rose to 14 this year. Gould signaled support for new trust banks, cautioned against using "reputation risk" to block entrants, and noted that regulators are preparing updates as the banking framework evolves "from the telegraph to the blockchain."

The Supreme Court's conservative majority signaled it is likely to back President Donald Trump's removal of Federal Trade Commission member Rebecca Slaughter, positioning the court to weaken or overturn Humphrey's Executor, the 1935 precedent limiting presidential authority over independent agencies. Justices pressed on the implications for bodies such as the Federal Reserve, though several suggested the ruling could be narrowly tailored, while the liberal wing warned that dismantling the precedent could ripple across the administrative state.